Briefly Noted | HMH Restructuring Debt, Will File Prepackaged Bankruptcy

Houghton Mifflin Harcourt, still struggling with a heavy debt burden despite an earlier capital restructuring, is once again looking to rework its debt. In an announcement this morning, the company said it had reached an agreement with the majority of its lenders that will eliminate $3.1 billion of debt and reduce its annual interest payments by about $250 million.

As part of the restructuring, HMH will file for prepackaged Chapter 11 bankruptcy in the United States Bankruptcy Court, Southern District of New York within 10 days. It hopes to be out of bankruptcy by the end of June.

In a letter to employees, CEO Linda Zecher said there are no plans for layoffs and that vendors and suppliers will be paid in full. “This process will have no impact on our day-to-day operations. We will continue normal business operations, now and throughout the process. We expect there will be no disruption to our relationships with our employees, customers, business partners, suppliers or vendors,” Zecher wrote.

via HMH Restructuring Debt, Will File Prepackaged Bankruptcy.